income-contingent loans

The US student loan system is currently in crisis. US graduates owe $1.3 trillion in student loans; seven million borrowers are in default and even more are in arrears. The impact on borrowers is catastrophic. We argue that this is mainly due to the...

Borrowing for college has risen for decades, and today 7 million of these student loans are in default. Yet the cost of borrowing is far lower than the lifetime payoff to college, which is estimated to be hundreds of thousands of dollars. Moreover,...